News Details


Caleres Reports Record Consolidated Net Sales and Earnings in Second Quarter 2022 and Reiterates Full Year 2022 Earnings Per Share Guidance

August 23, 2022
  • Delivers record second quarter consolidated net sales of $738.3 million
  • Generates record second quarter earnings per diluted share of $1.38
  • Repurchases approximately 1.1 million shares of Caleres common stock
  • Reiterates fiscal year 2022 earnings per share guidance

Caleres (NYSE: CAL, caleres.com), a diverse portfolio of consumer-driven footwear brands, today reported financial results for the second quarter ended July 30, 2022. During the quarter, Caleres continued its strong execution, delivering record second quarter sales and earnings and making significant accomplishments toward its enterprise-wide strategies. Net sales rose 9.3 percent year-over-year driven by positive momentum in the Brand Portfolio segment reflecting the successful execution of its initiatives to elevate product design, refine product assortments and increase the availability of inventory to meet demand. Notably, the company achieved net earnings of $51.2 million and generated a 45.6 percent consolidated gross profit margin. In addition, Caleres strategically deployed cash to augment inventory levels ahead of the fall buying and back-to-school seasons, prioritized investment in value-enhancing growth opportunities and repurchased $27.0 million, or 1.1 million shares, of Caleres common stock.

“During the second quarter, Caleres delivered another exceptional financial and operational performance with record second quarter sales and earnings and strong gross profit margins – marking yet another period of outstanding results,” said Diane Sullivan, Chairman and Chief Executive Officer. “In particular, Caleres utilized its growing and dynamic portfolio to capitalize on robust consumer demand in trending footwear categories, to support strong consolidated margin levels and to drive another excellent quarter of return on sales. In short, we demonstrated again that our versatile structure provides a significant and differentiating strength that, over the long term, enables Caleres to drive exceptional results in strong market environments while still generating attractive levels of profitability in difficult macro environments.”

Second Quarter 2022 Highlights

(13-weeks ended July 30, 2022 compared to 13-weeks ended July 31, 2021)

  • Net sales were $738.3 million, up 9.3 percent from the second quarter of fiscal 2021;

-­ A 3.8 percent sales decline in the Famous Footwear segment

-­ A 35.6 percent sales increase in the Brand Portfolio segment

-­ Direct-to-consumer sales represented approximately 72 percent of total net sales

  • Gross profit was $336.8 million, while gross margin was 45.6 percent;

-­ A 48.9 percent gross margin in the Famous Footwear segment

-­ A 38.3 percent gross margin in the Brand Portfolio segment

  • SG&A as percentage of sales was 36.4 percent, 206-basis points lower than second quarter of fiscal 2021;
  • Net earnings of $51.2 million, or earnings of $1.38 per diluted share, compared to net earnings of $37.4 million, or earnings of $0.97 per diluted share in the second quarter of fiscal 2021;
  • Trailing twelve-month adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $324.2 million; or 11.0 percent of sales;
  • Inventory levels were up approximately 36 percent, year-over-year, reflecting efforts to increase inventory levels ahead of the fall buying and back-to-school seasons. Inventory was down 2.7 percent when compared to second quarter of 2019 – a more comparable period;
  • Generated $7.6 million in cash from operations; and
  • Returned $29.6 million to shareholders through dividends and share repurchases.

Capital Return Progress

During the second quarter, Caleres opportunistically repurchased 1.1 million shares of common stock, representing approximately 3 percent of shares outstanding, at a total cost of $27.0 million. At quarter-end, approximately 7.2 million shares remained available in the current share repurchase authorization. The company views its substantial and ongoing buyback program as a highly effective mechanism for enhancing shareholder value.

In addition to buybacks, Caleres returned $2.6 million to shareholders through its recurring quarterly cash dividend during the second quarter.

Future dividend declarations and share repurchases will be based on a number of factors, including business and market conditions, the company’s future financial performance and other capital priorities.

Outlook

“With $2.70 of diluted earnings per share delivered in the first half, 2022 is shaping up to be another outstanding year for Caleres,” said Sullivan. “Even with ongoing inflationary pressures and uncertainties around the direction of consumer spending, Caleres is exceptionally well-positioned to maintain its significant momentum due to its diversified portfolio that can capitalize on opportunities across a broad spectrum of consumer segments and throughout a wide a range of market environments. Furthermore, the Caleres team is committed to utilizing our core competencies – in brand building, merchandising, marketing and logistics – to further our strategic priorities, while mobilizing quickly to unlock enterprise-wide growth opportunities. With the work we’ve done to structurally strengthen the long-term cash generating potential of the enterprise we are enthusiastic about the long-term prospects for profitability and remain sharply focused on creating value for our shareholders through our capital return program.”

Fiscal Year 2022 Outlook:

Caleres is reiterating its fiscal year 2022 financial outlook. Specifically, the company is raising and tightening its consolidated sales levels from up between 2 percent and 5 percent to up between 4 percent to 6 percent when compared to fiscal year 2021 and still expects earnings per diluted share to be between $4.20 and $4.40, which would represent another year of record or near-record earnings for the organization.

Investor Conference Call

Caleres will host an investor conference call at 5:00 p.m. ET today, Tuesday, August 23. The webcast and associated slides will be available at investor.caleres.com/news/events. A live conference call will be available at (877) 704-4453 for analysts in North America or (201) 389-0920 for international analysts, no passcode necessary. A replay will be available at investor.caleres.com/news/events/archive for a limited period. Investors may also access the replay by dialing (844) 512-2921 in North America or (412) 317-6671 internationally and using the conference pin 13732134.

Definitions

All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Caleres, Inc. and diluted earnings per common share attributable to Caleres, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.

Non-GAAP Financial Measures

In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the company provides historic and estimated future gross profit, operating earnings, net earnings and earnings per diluted share adjusted to exclude certain gains, charges, and recoveries, earnings before interest, taxes, depreciation and amortization, which are non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company’s core operating results. These measures should not be considered a substitute for or superior to GAAP results.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) supply chain disruptions and inflationary pressures; (ii) the coronavirus pandemic and its adverse impact on our business operations and financial condition (iii) changing consumer demands, which may be influenced by general economic conditions and other factors; (iv) rapidly changing consumer preferences and purchasing patterns and fashion trends; (v) customer concentration and increased consolidation in the retail industry; (vi) intense competition within the footwear industry; (vii) foreign currency fluctuations; (viii) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (ix) cybersecurity threats or other major disruption to the company’s information technology systems; (x) the ability to accurately forecast sales and manage inventory levels; (xi) a disruption in the company’s distribution centers; (xii) the ability to recruit and retain senior management and other key associates; (xiii) the ability to secure/exit leases on favorable terms; (xiv) the ability to maintain relationships with current suppliers; (xv) transitional challenges with acquisitions and divestitures; (xvi) changes to tax laws, policies and treaties; (xvii) compliance with applicable laws and standards with respect to labor, trade and product safety issues; and (xviii) the ability to attract, retain, and maintain good relationships with licensors and protect our intellectual property rights. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended January 29, 2022, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

 

SCHEDULE 1

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

($ thousands, except per share data)

 

July 30, 2022

 

July 31, 2021

 

July 30, 2022

 

July 31, 2021

Net sales

 

$

738,330

 

$

675,531

 

$

1,473,445

 

$

1,314,167

Cost of goods sold

 

 

401,515

 

 

353,238

 

 

809,636

 

 

716,987

Gross profit

 

 

336,815

 

 

322,293

 

 

663,809

 

 

597,180

Selling and administrative expenses

 

 

268,395

 

 

259,501

 

 

529,194

 

 

503,036

Restructuring and other special charges, net

 

 

 

 

 

 

 

 

13,482

Operating earnings

 

 

68,420

 

 

62,792

 

 

134,615

 

 

80,662

Interest expense, net

 

 

(2,584)

 

 

(11,941)

 

 

(4,883)

 

 

(23,734)

Other income, net

 

 

3,217

 

 

3,860

 

 

6,639

 

 

7,688

Earnings before income taxes

 

 

69,053

 

 

54,711

 

 

136,371

 

 

64,616

Income tax provision

 

 

(17,500)

 

 

(16,559)

 

 

(34,833)

 

 

(20,080)

Net earnings

 

 

51,553

 

 

38,152

 

 

101,538

 

 

44,536

Net earnings (loss) attributable to noncontrolling interests

 

 

375

 

 

756

 

 

(149)

 

 

993

Net earnings attributable to Caleres, Inc.

 

$

51,178

 

$

37,396

 

$

101,687

 

$

43,543

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share attributable to Caleres, Inc. shareholders

 

$

1.40

 

$

0.98

 

$

2.74

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share attributable to Caleres, Inc. shareholders

 

$

1.38

 

$

0.97

 

$

2.70

 

$

1.13

SCHEDULE 2

 

CALERES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

(Unaudited)

($ thousands)

 

July 30, 2022

 

July 31, 2021

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

45,955

 

$

54,684

Receivables, net

 

 

127,580

 

 

110,522

Inventories, net

 

 

770,652

 

 

565,512

Property and equipment, held for sale

 

 

16,777

 

 

Prepaid expenses and other current assets

 

 

57,827

 

 

76,645

Total current assets

 

 

1,018,791

 

 

807,363

 

 

 

 

 

 

 

Lease right-of-use assets

 

 

516,486

 

 

508,597

Property and equipment, net

 

 

137,007

 

 

161,066

Goodwill and intangible assets, net

 

 

221,447

 

 

233,777

Other assets

 

 

131,477

 

 

122,095

Total assets

 

$

2,025,208

 

$

1,832,898

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

$

348,500

 

$

100,000

Current portion of long-term debt

 

 

 

 

99,540

Mandatory purchase obligation - Blowfish Malibu

 

 

 

 

52,639

Trade accounts payable

 

 

399,265

 

 

348,795

Lease obligations

 

 

131,601

 

 

126,820

Other accrued expenses

 

 

260,434

 

 

250,875

Total current liabilities

 

 

1,139,800

 

 

978,669

 

 

 

 

 

 

 

Noncurrent lease obligations

 

 

451,657

 

 

463,746

Long-term debt

 

 

 

 

99,540

Other liabilities

 

 

48,874

 

 

45,652

Total other liabilities

 

 

500,531

 

 

608,938

 

 

 

 

 

 

 

Total Caleres, Inc. shareholders’ equity

 

 

379,133

 

 

240,697

Noncontrolling interests

 

 

5,744

 

 

4,594

Total equity

 

 

384,877

 

 

245,291

Total liabilities and equity

 

$

2,025,208

 

$

1,832,898

SCHEDULE 3

 

CALERES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

($ thousands)

 

July 30, 2022

 

July 31, 2021

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

27,251

 

 

$

135,547

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(16,820

)

 

 

(6,816

)

Capitalized software

 

 

(3,906

)

 

 

(2,581

)

Net cash used for investing activities

 

 

(20,726

)

 

 

(9,397

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit agreement

 

 

437,500

 

 

 

164,500

 

Repayments under revolving credit agreement

 

 

(379,000

)

 

 

(314,500

)

Dividends paid

 

 

(5,200

)

 

 

(5,336

)

Acquisition of treasury stock

 

 

(41,672

)

 

 

 

Issuance of common stock under share-based plans, net

 

 

(3,814

)

 

 

(3,752

)

Contributions by noncontrolling interests, net

 

 

1,500

 

 

 

 

Other

 

 

 

 

 

(677

)

Net cash provided by (used for) financing activities

 

 

9,314

 

 

 

(159,765

)

Effect of exchange rate changes on cash and cash equivalents

 

 

1

 

 

 

4

 

Increase (decrease) in cash and cash equivalents

 

 

15,840

 

 

 

(33,611

)

Cash and cash equivalents at beginning of period

 

 

30,115

 

 

 

88,295

 

Cash and cash equivalents at end of period

 

$

45,955

 

 

$

54,684

 

SCHEDULE 4

 

CALERES, INC.

RECONCILIATION OF NET EARNINGS (LOSS) AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

July 30, 2022

 

July 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Impact of

 

Attributable

 

 

Diluted

 

Impact of

 

Attributable

 

Diluted

 

 

Charges/Other

 

to Caleres,

 

 

Earnings

 

Charges/Other

 

to Caleres,

 

Earnings

($ thousands, except per share data)

 

Items

 

Inc.

 

 

Per Share

 

Items

 

Inc.

 

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings

 

 

 

 

$

51,178

 

$

1.38

 

 

 

 

$

37,396

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

 

$

 

$

 

$

7,115

 

$

5,284

 

$

0.14

Deferred tax valuation allowances

 

 

 

 

 

 

 

 

 

 

3,294

 

 

0.08

Total charges/other items

 

$

 

$

 

$

 

$

7,115

 

$

8,578

 

$

0.22

Adjusted earnings

 

 

 

 

$

51,178

 

$

1.38

 

 

 

 

$

45,974

 

$

1.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

 

 

July 30, 2022

 

July 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

Pre-Tax

 

Net Earnings

 

 

 

 

Impact of

 

Attributable

 

Diluted

 

Impact of

 

Attributable

 

Diluted

 

 

Charges/Other

 

to Caleres,

 

Earnings

 

Charges/Other

 

to Caleres,

 

Earnings

($ thousands, except per share data)

 

Items

 

Inc.

 

Per Share

 

Items

 

Inc.

 

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings

 

 

 

 

$

101,687

 

$

2.70

 

 

 

 

$

43,543

 

$

1.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

 

 

 

 

 

$

13,505

 

 

10,030

 

$

0.26

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

13,482

 

 

11,927

 

 

0.31

Deferred tax valuation allowances

 

 

 

 

 

 

 

 

 

 

3,294

 

 

0.09

Total charges/other items

 

$

 

$

 

$

 

$

26,987

 

$

25,251

 

$

0.66

Adjusted earnings

 

 

 

 

$

101,687

 

$

2.70

 

 

 

 

$

68,794

 

$

1.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Trailing Twelve Months

 

 

July 30, 2022

 

July 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Tax

 

Net Earnings

 

 

Pre-Tax

 

Net (Loss)

 

 

 

Impact of

 

Attributable

 

 

Impact of

 

Earnings

 

 

 

Charges/Other

 

to Caleres,

 

 

Charges/Other

 

Attributable to

 

($ thousands)

 

Items

 

Inc.

 

 

Items

 

Caleres, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings (loss)

 

 

 

 

$

195,163

 

 

 

 

 

$

(19,016

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charges/other items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment to Blowfish purchase obligation

 

$

1,918

 

 

1,424

 

 

$

27,618

 

 

20,509

 

 

Loss on early extinguishment of debt

 

 

1,011

 

 

750

 

 

 

 

 

 

 

Deferred tax valuation allowances

 

 

 

 

746

 

 

 

 

 

3,294

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

28,256

 

 

25,607

 

 

Intangible asset impairment charges

 

 

 

 

 

 

 

23,805

 

 

17,854

 

 

COVID-19-related expenses

 

 

 

 

 

 

 

15,245

 

 

37,486

 

 

Vionic integration-related costs

 

 

 

 

 

 

 

3,436

 

 

2,552

 

 

Total charges/other items

 

$

2,929

 

$

2,920

 

 

$

98,360

 

$

107,302

 

 

Adjusted earnings

 

 

 

 

$

198,083

 

 

 

 

 

$

88,286

 

 

 

 

SCHEDULE 5

 

 

 

 

 

 

 

 

 

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

 

 

 

 

 

 

 

 

 

SUMMARY FINANCIAL RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Thirteen Weeks Ended

 

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

Net sales

 

$

436,375

 

$

453,649

 

$

324,060

 

$

239,013

 

$

(22,105)

 

$

(17,131)

 

$

738,330

 

$

675,531

 

Gross profit

 

 

213,605

 

 

227,414

 

 

124,142

 

 

94,890

 

 

(932)

 

 

(11)

 

 

336,815

 

 

322,293

 

Adjusted gross profit

 

 

213,605

 

 

227,414

 

 

124,142

 

 

94,890

 

 

(932)

 

 

(11)

 

 

336,815

 

 

322,293

 

Gross profit rate

 

 

48.9

%

 

50.1

%

 

38.3

%

 

39.7

%

 

4.2

%

 

0.0

%

 

45.6

%

 

47.7

%

Adjusted gross profit rate

 

 

48.9

%

 

50.1

%

 

38.3

%

 

39.7

%

 

4.2

%

 

0.0

%

 

45.6

%

 

47.7

%

Operating earnings (loss)

 

 

62,496

 

 

85,498

 

 

29,410

 

 

16,554

 

 

(23,486)

 

 

(39,260)

 

 

68,420

 

 

62,792

 

Adjusted operating earnings (loss)

 

 

62,496

 

 

85,498

 

 

29,410

 

 

16,554

 

 

(23,486)

 

 

(39,260)

 

 

68,420

 

 

62,792

 

Operating earnings (loss) %

 

 

14.3

%

 

18.8

%

 

9.1

%

 

6.9

%

 

n/m

%

 

n/m

%

 

9.3

%

 

9.3

%

Adjusted operating earnings (loss) %

 

 

14.3

%

 

18.8

%

 

9.1

%

 

6.9

%

 

n/m

%

 

n/m

%

 

9.3

%

 

9.3

%

Same-store sales % (on a 13-week basis)

 

 

(3.1)

%

 

(1.1)

%

 

23.5

%

 

16.3

%

 

%

 

%

 

%

 

%

Number of stores

 

 

881

 

 

912

 

 

85

 

 

87

 

 

 

 

 

 

966

 

 

999

 

 

n/m – Not meaningful

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Gross profit

 

$

213,605

 

$

227,414

 

$

124,142

 

$

94,890

 

$

(932

)

 

$

(11

)

 

$

336,815

 

$

322,293

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

 

$

213,605

 

$

227,414

 

$

124,142

 

$

94,890

 

$

(932

)

 

$

(11

)

 

$

336,815

 

$

322,293

Operating earnings (loss)

 

$

62,496

 

$

85,498

 

$

29,410

 

$

16,554

 

$

(23,486

)

 

$

(39,260

)

 

$

68,420

 

$

62,792

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (loss)

 

$

62,496

 

$

85,498

 

$

29,410

 

$

16,554

 

$

(23,486

)

 

$

(39,260

)

 

$

68,420

 

$

62,792

 

SCHEDULE 5

 

 

 

 

 

 

 

 

 

CALERES, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

 

 

 

 

 

 

 

 

 

SUMMARY FINANCIAL RESULTS

 

 

 

 

 

 

 

(Unaudited)

 

 

 

Twenty-Six Weeks Ended

 

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

 

Net sales

 

$

820,877

 

$

851,754

 

$

689,800

 

$

489,318

 

$

(37,232)

 

$

(26,905)

 

$

1,473,445

 

$

1,314,167

 

Gross profit

 

 

402,839

 

 

407,229

 

 

263,441

 

 

188,892

 

 

(2,471)

 

 

1,059

 

 

663,809

 

 

597,180

 

Adjusted gross profit

 

 

402,839

 

 

407,229

 

 

263,441

 

 

188,892

 

 

(2,471)

 

 

1,059

 

 

663,809

 

 

597,180

 

Gross profit rate

 

 

49.1

%

 

47.8

%

 

38.2

%

 

38.6

%

 

6.6

%

 

(3.9)

%

 

45.1

%

 

45.4

%

Adjusted gross profit rate

 

 

49.1

%

 

47.8

%

 

38.2

%

 

38.6

%

 

6.6

%

 

(3.9)

%

 

45.1

%

 

45.4

%

Operating earnings (loss)

 

 

112,184

 

 

133,371

 

 

70,760

 

 

13,733

 

 

(48,329)

 

 

(66,442)

 

 

134,615

 

 

80,662

 

Adjusted operating earnings (loss)

 

 

112,184

 

 

133,371

 

 

70,760

 

 

27,215

 

 

(48,329)

 

 

(66,442)

 

 

134,615

 

 

94,144

 

Operating earnings (loss)%

 

 

13.7

%

 

15.7

%

 

10.3

%

 

2.8

%

 

n/m

%

 

n/m

%

 

9.1

%

 

6.1

%

Adjusted operating earnings (loss)%

 

 

13.7

%

 

15.7

%

 

10.3

%

 

5.6

%

 

n/m

%

 

n/m

%

 

9.1

%

 

7.2

%

Same-store sales % (on a 26-week basis)

 

 

(3.5)

%

 

0.5

%

 

43.8

%

 

10.2

%

 

%

 

%

 

%

 

%

Number of stores

 

 

881

 

 

912

 

 

85

 

 

87

 

 

 

 

 

 

966

 

 

999

 

 

n/m – Not meaningful

 

RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Twenty-Six Weeks Ended

 

 

Famous Footwear

 

Brand Portfolio

 

Eliminations and Other

 

Consolidated

 

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

July 30,

 

July 31,

($ thousands)

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Gross profit

 

$

402,839

 

$

407,229

 

$

263,441

 

$

188,892

 

$

(2,471

)

 

$

1,059

 

 

$

663,809

 

$

597,180

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - brand exits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total charges/other items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

 

$

402,839

 

$

407,229

 

$

263,441

 

$

188,892

 

$

(2,471

)

 

$

1,059

 

 

$

663,809

 

$

597,180

Operating earnings (loss)

 

$

112,184

 

$

133,371

 

$

70,760

 

$

13,733

 

$

(48,329

)

 

$

(66,442

)

 

$

134,615

 

$

80,662

Charges/Other Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Portfolio - business exits

 

 

 

 

 

 

 

 

13,482

 

 

 

 

 

 

 

 

 

 

13,482

Total charges/other items

 

 

 

 

 

 

 

 

13,482

 

 

 

 

 

 

 

 

 

 

13,482

Adjusted operating earnings (loss)

 

$

112,184

 

$

133,371

 

$

70,760

 

$

27,215

 

$

(48,329

)

 

$

(66,442

)

 

$

134,615

 

$

94,144

SCHEDULE 6

 

CALERES, INC.

BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

 

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

51,553

 

 

$

38,152

 

 

$

101,538

 

 

$

44,536

 

Net (earnings) loss attributable to noncontrolling interests

 

 

(375

)

 

 

(756

)

 

 

149

 

 

 

(993

)

Net earnings attributable to Caleres, Inc.

 

 

51,178

 

 

 

37,396

 

 

 

101,687

 

 

 

43,543

 

Net earnings allocated to participating securities

 

 

(2,226

)

 

 

(1,360

)

 

 

(4,216

)

 

 

(1,575

)

Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities

 

$

48,952

 

 

$

36,036

 

 

$

97,471

 

 

$

41,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted common shares attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

35,031

 

 

 

36,880

 

 

 

35,620

 

 

 

36,794

 

Dilutive effect of share-based awards

 

 

467

 

 

 

267

 

 

 

467

 

 

 

212

 

Diluted common shares attributable to Caleres, Inc.

 

 

35,498

 

 

 

37,147

 

 

 

36,087

 

 

 

37,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share attributable to Caleres, Inc. shareholders

 

$

1.40

 

 

$

0.98

 

 

$

2.74

 

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share attributable to Caleres, Inc. shareholders

 

$

1.38

 

 

$

0.97

 

 

$

2.70

 

 

$

1.13

 

SCHEDULE 7

 

CALERES, INC.

BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

 

 

July 30,

 

July 31,

 

July 30,

 

July 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

($ thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings

 

$

51,553

 

 

$

46,730

 

 

$

101,538

 

 

$

69,787

 

Net (earnings) loss attributable to noncontrolling interests

 

 

(375

)

 

 

(756

)

 

 

149

 

 

 

(993

)

Adjusted net earnings attributable to Caleres, Inc.

 

 

51,178

 

 

 

45,974

 

 

 

101,687

 

 

 

68,794

 

Net earnings allocated to participating securities

 

 

(2,226

)

 

 

(1,673

)

 

 

(4,216

)

 

 

(2,504

)

Adjusted net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities

 

$

48,952

 

 

$

44,301

 

 

$

97,471

 

 

$

66,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted common shares attributable to Caleres, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

35,031

 

 

 

36,880

 

 

 

35,620

 

 

 

36,794

 

Dilutive effect of share-based awards

 

 

467

 

 

 

267

 

 

 

467

 

 

 

212

 

Diluted common shares attributable to Caleres, Inc.

 

 

35,498

 

 

 

37,147

 

 

 

36,087

 

 

 

37,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic adjusted earnings per common share attributable to Caleres, Inc. shareholders

 

$

1.40

 

 

$

1.20

 

 

$

2.74

 

 

$

1.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted adjusted earnings per common share attributable to Caleres, Inc. shareholders

 

$

1.38

 

 

$

1.19

 

 

$

2.70

 

 

$

1.79

 

SCHEDULE 8

 

CALERES, INC.

CALCULATION OF EBITDA AND ADJUSTED EBITDA (NON-GAAP METRICS)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Trailing Twelve Months Ended

($ thousands)

 

July 30, 2022

 

July 31, 2021

EBITDA:

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Caleres, Inc.

 

$

195,163

 

 

$

(19,016)

 

Income tax provision

 

 

65,834

 

 

 

31,081

 

Interest expense, net

 

 

12,079

 

 

 

49,155

 

Loss on early extinguishment of debt

 

 

1,011

 

 

 

 

Depreciation and amortization (1)

 

 

50,065

 

 

 

55,845

 

EBITDA

 

$

324,152

 

 

$

117,065

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

11.0

%

 

 

4.6

%

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

Adjusted net earnings attributable to Caleres, Inc. (2)

 

$

198,083

 

 

$

88,286

 

Income tax provision (3)

 

 

65,843

 

 

 

22,139

 

Interest expense, net (4)

 

 

10,161

 

 

 

21,537

 

Depreciation and amortization (1)

 

 

50,065

 

 

 

55,845

 

Adjusted EBITDA

 

$

324,152

 

 

$

187,807

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

11.0

%

 

 

7.4

%

(1)

Includes depreciation and amortization of capitalized software and intangible assets.

(2)

Refer to Schedule 4 for the consolidated reconciliation of net earnings (loss) attributable to Caleres, Inc. to adjusted net earnings attributable to Caleres, Inc.

(3)

Excludes the income tax impacts of the adjustments on Schedule 4.

(4)

Excludes the fair value adjustment to the Blowfish purchase obligation, as reflected on Schedule 4.

 

Investor Contact:
Logan Bonacorsi
lbonacorsi@caleres.com

Source: Caleres